VCT, EIS & SEIS compared

At Locke Williams Associates we can advise individuals in the Birmingham area on a range of tax-saving opportunities. The following article compares Venture Capital Trusts, the Enterprise Investment Scheme and Seed Enterprise Investment Scheme.

The reliefs for Venture Capital Trusts (VCT), the Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS) are similar in many respects, but there are some significant differences. The table below highlights the main reliefs. For further details see the facts sheets for each type of investment.

VCT

EIS

SEIS

Annual investment limit

£200,000

£1 million *

£100,000

Income tax relief for subscribers

30%

30%

50%

Clawback if held for less than

5 years

3 years

3 years

Reinvestment relief period

– before gain made

N/A

1 year

Same tax year

– after gain made

N/A

3 years

Tax free dividends?

Yes

No

No

Tax free capital gains?

Yes

Yes (after 3 years)

Yes (after 3 years)

Tax relief for losses?

No

Yes

Yes

IHT business property relief?

No

Yes

Yes

* This is increased to £2 million provided that anything above £1 million is invested in knowledge-intensive companies. There is no limit on CGT deferral.

For more information on Venture Capital Trusts, the Enterprise Investment Scheme and Seed Enterprise Investment Scheme, individuals in the Birmingham area should contact Locke Williams Associates.